Daily Pivots: (S1) 1.2762; (P) 1.2869; (R1) 1.2935; More…
GBP/USD drops sharply today as low as 1.2618 so far. Break of 1.2725 support confirms resumption of whole decline from 1.3514. Intraday bias is now on the downside for 61.8% retracement of 1.1958 to 1.3514 at 1.2552. Some support could be seen there and break of 1.2848 minor resistance will turn intraday bias neutral first. However, sustained break of 1.2552 will pave the way to retest 1.1958 low.
In the bigger picture, rise from 1.1958 is expected resume after correction from 1.3514 completes. Next target is 1.4376 key resistance. Reactions from there would decide whether it’s in consolidation from 1.1946 (2016 low). Or, firm break of 1.4376 will indicate long term bullish reversal. However, sustained break of 1.2582 resistance turned support will dampen these views and bring retest of 1.1958 low instead.
